Abazigal
Contributor
The bulk of Apple's services revenue still comes from the App Store (that 30% cut) and Google's annual $20 billion payment. I still don't think that enough people are subscribing to Apple's own services to really move the needle here. That said, I feel that these services still have value in improving the overall "stickiness" of Apple's hardware.Apple services represent 28% of Apple's total revenue.
For example, Apple Fitness increases the inventive for sticking with an Apple Watch. Apple Arcade is not a bad deal when you have young children and want a curated selection of "safe" games for them to access (and these games can in turn only be accessed Apple devices). TV+ buys Apple prestige and buzz (I find their shows tend to be better production value than Netflix, albeit more on the safe side), as well as a reason for users to open the TV app (where Apple can then sell subscriptions for other streaming channels as well as iTunes content). Apple Music continues to enjoy unparalleled integration with the Apple ecosystem (I wish I didn't already have YouTube music as part of my premium subscription).
It's not had to see the whole Apple experience as the integration of hardware, software and services. 🙂
